Metro phase-I bids to be finalised on Jan 17

Reliance Energy, Siemens India and IL&FS led consortiums in the race

The Mumbai Metropolitan Region Development Authority (MMRDA) will scrutinise the final bid documents for the first phase of the Mumbai Metro rail project and will announce the final winner on January 17.

The final bidders for the project are three consortiums led by Reliance Energy, Siemens India and IL&FS. The project is expected to achieve financial closure by June. It will be on a build, operate and transfer (BOT) basis.

Technical bids were evaluated early last year and the three consortiums were shortlisted for financial bids.

Work on the first phase will begin this year and it is expected to be completed by 2013. The first phase will cover three corridors - connecting Versova-Andheri with Ghatkopar on a 15-km raised rail corridor, expected to be completed by 2008.

The 36-km long second phase will connect Colaba with Charkop in Kandivili via Bandra - around 12 km of this corridor will be underground. The 12.8-km long third corridor will be entirely underground, connecting Mahim to Mankhurd through the Bandra-Kurla Complex.

The first phase of the Metro rail project, expected to cost Rs 1,500 crore, has been conceived as a joint venture project in which the government and the private promoters of the project will hold 13 per cent equity each, putting Rs 190 crore each.

The remaining 74 per cent will be financed through debt, to be raised through market borrowings. A special purpose vehicle is being created for this purpose.

The state government's exposure to the Mumbai Metro's first phase is likely to be around Rs 800 crore, taking into account the cost of land to be provided by the government for a depot at Versova and the viability gap funding, which will be offered to the private operator.

Of the government's share, MMRDA is likely to bring in other service providers in the city such as BMC and BEST while retaining 50 per cent of the equity for itself.

Almost 88 per cent of the people in the city travel by train and the Metro rail is expected to reduce congestion during peak hours by as much as 40 per cent.

The Metro will connect areas so far not connected through rail and provide an east-west rail corridor in the city for the first time.